Diversification

[winston]

Asset Contagion Worse Than 2008 as Markets Held Hostage to Rates

by Lu Wang

Treasuries, corporate bonds exerted big influence on others
JPMorgan analyst warns of violent unwind of correlations

Different markets are influencing each other in 2016 at a higher rate that any time since the measure was invented in 2008. T

The elevated level of cross-asset correlations highlights the danger of simultaneous selloffs should central banks tighten.

But what’s more troubling is the potential for violent swings in the inter-market relationship that could make it harder for quantitative funds to adjust.

Source: Bloomberg

http://www.bloomberg.com/news/articles/ ... e-to-rates

[winston]

Why Your Portfolio May Not Be as Diversified as You Think

by Kim Iskyan

During an economic crisis, most assets will move in the same direction -- namely, downward.

Source: TheStreet.com

https://www.thestreet.com/story/1387227 ... yptr=yahoo

[winston]

Diversification boosts returns, cuts risk

By Herbert Lian

Source: The Edge

http://smr.theedgemarkets.com/article/d ... 2-87358173

[winston]

Short-changing bonds, snubbing the globe and other diversification mistakes to avoid

by Anora Mahmudova

Source: Market Watch

https://finance.yahoo.com/news/short-ch ... 36278.html

[winston]

The secret to Hong Kong tycoons’ success in one word: diversify

Source: SCMP

http://www.scmp.com/business/companies/ ... -diversify

[winston]

Investment protection no one is talking about

by Dr. David Eifrig

Protecting your portfolio by using trailing stops, position sizing, and owning sleep well at night (“SWAN”) stocks.

If you don’t properly diversify your portfolio by owning multiple sectors, you WILL lose money.

Source: Retirement Millionaire Daily

http://thecrux.com/investment-protectio ... ing-about/

[winston]

3 Tips to Diversify Your Portfolio

by Masood Vojdani

A diversified portfolio can include a variety of asset classes such as value, growth, large-, small- and mid-cap, international and emerging market equities as well as various fixed income investments (short-term, intermediate and floating rate, for example).

1. Don't focus on chasing a particular sector.
2. Think beyond the U.S.
3. Resist the temptation to time the market.

Source: U.S.News & World Report

https://finance.yahoo.com/news/3-tips-d ... 42038.html

[winston]

72% of Investors Are Making This Serious Mistake — Are You?

by Wendy Connick

1. Diversifying between asset classes
2. Diversifying within an asset class
3. Diversifying geographically

Source: Motley Fool

http://dailytradealert.com/2017/12/20/7 ... s-mistake/

[winston]

72% of Investors Are Making This Serious Mistake — Are You?

by Wendy Connick

1. Diversifying between asset classes
2. Diversifying within an asset class
3. Diversifying geographically

Source: Motley Fool

http://dailytradealert.com/2017/12/20/7 ... s-mistake/

[winston]

A Diversified Portfolio May Not Help Investors Much This Year

Rising inflation expectations and the knock-on effect of higher yields are acting to prevent bonds from rallying in risk-off environments.

In such a reflationary environment, the correlation between stocks and bonds is likely to go up, reducing the diversification benefits for investors holding both assets.

A negative surprise on economic growth that sparks a risk-off market environment would lead to a drop in correlations and bonds would outperform.

Source: Bloomberg

https://www.bloomberg.com/news/articles ... yptr=yahoo


https://finance.yahoo.com/m/7b910bbc-82 ... o-may.html